Not enough Dems support it and it’s a divided Congress.
What regulations are being discussed, and what is the probability that any of these regulations will see the light of day? At this point, what is the likelihood that the SVB collapse is a contagion?Īt this stage it’s extremely unlikely lawmakers would agree on a bill that would lead to any substantial changes - like Warren and Porter’s rollback of the Dodd-Frank rollback - that would make it across the finish line. Victoria Guida, POLITICO economics reporter covering the Federal Reserve, the Treasury Department and the broader economy But there’s certainly room to debate whether we don’t need as many banks as we have now. And regional banks like SVB are probably better able to compete with those banks than the little guys. You don’t want too much concentration in the megabanks (think JPMorgan Chase or Bank of America, which each have more than $3 trillion in assets, compared to SVB, which had roughly $200 billion). So consolidation is perhaps understandable. Part of what’s strange though is a lot of that is a vestige of when we used to have restrictions on banking across state lines. has nearly 5,000 banks (and another 5,000 or so credit unions). Is it necessary that regional banks continue to exist? Why or why not?
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